Well 2012 has been quite a year. US ISM came in at 49.5 vs expectations of 51.5. Also recently the final reading of the PMI for China was 51.5 in December according to statements form HSBC holdings and was the fastest pace in 19 months. The last month has also seen the JPY weaken significantly against the USD due to a change in government and the expectations of more aggressive monetary policy form the BoJ.
Shinzo Abe, the prime minister wants an increase in fiscal spending to beat deflation and give a boost to Japanese exports as their goods become cheaper to foreign entities due to the weakening of it's currency.
Also the other big story to look at has been the impending US Fiscal Cliff with automatic taxation and spending cuts on the agenda which should be resolved imminently. This should help give a boost to global markets. This year has seen healthy returns in Greek government bonds and also equity markets. Will 2013 be a year for equities or a safe haven play into the USD? Lets see how the markets play out.
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